how will the government raise the money?

[thereiscustardinthejamtart]

I’m curious as to how the government are going to raise the money for the “£22b black hole”.

Presumably they can either cut spending or raise more money (either through taxation or growth).

They have said they aren’t going to raise income tax, VAT or NI.

They don’t seem to be going for a growth plan.

So what are we expecting to be cut, and what are we expecting to be taxed.

I assume they are looking at pensions (get rid of tax free lump sum, reduce or eliminate relief on contributions), inheritance tax, some kind of additional tax on corporations. They are already doing VAT on private education.

Cuts - winter fuel allowance. I assume reduction in university funding, arts funding. What else?

I know a few people who would have had more children if they had felt financially ready to start earlier and didn’t need to space the children out to make childcare slightly less unaffordable.

Fix housing and childcare costs (though I don’t know how you’d do that at this stage) and that’s a lot of the problem gone.

its not going to make women have 5 dc but you may find a lot more have 2.

Fix housing and childcare costs (though I don’t know how you’d do that at this stage) and that’s a lot of the problem gone.

Think that ship has sailed unfortunately. Housing has ruined the country imo, people should be earning much higher wages but all growth was pushed into the housing market & its now a shit show.

I am all for the government not subsidising unemployed people living in expensive areas but am less keen on unemployed people being moved into other areas and the ghetto-isation of those areas.

I have seen perfectly nice but cheap areas suffer negative impacts of unemployed londoners being forcibly moved in. They often have expensive social care costs, expensive educational needs and expensive NHS requirements compared to the average local population. London should deal with its own employed and stop shipping its addicts, unemployed and mentally ill into other parts of the UK.

Depending on how its is used aid often has ties attached to it which can

1. Increase transparency and democracy in developing nations - this helps economic development and stability and reduces immigration from those countries

2. Helps develop ties and friendships/soft power with the UK - increasingly important for access to critical mineral resources eg rare earths and copper etc

3. Can be linked to improved health outcomes and rights for women (such as preventing rape and allowing women to make their own choices about how many children they have) in those countries.

We have been through a global pandemic : most countries have struggled in some way.
I think we were starting tomorrow recover under the tories, the "recession" didn't last very long, now RR is referring to the recession and 14 years of poor management.

Eccomics moves in cycles.

We've had a global credit crisis, that was major , isis, Syria, swiftly followed by other huge problems culminating in a global pandemic.

Ie go lightly and things will correct themselves.

Every country has debt.

@@Dorisbonson unfortunately one family who display anti social behaviour ruins it for everyone.

I'm not sure what the solution is.

But teens aren't having children. In fact apparently teens are generally just having little sex these days! Much less than previous generations. I don't think teen pregnancies are a problem from the stats!

The issue is due to cost of living, and childcare espcially, people are putting off having kids till later and having fewer. Personally childcare costs would be a factor for me and I know they are for my friends (who in your book would be apparently the "right sort of people" to have kids).

Statistically it doesn't look like workshy, pregnant teenagers have been our issue for at least a decade

The 'rich' will pay! They seem think that they can just hike up tax rates and they will get more money - it's doesn't work like that though.

I am quite shocked at how clueless they appear to be. A level economics students would have a better idea.

We don't need more children, we need fewer. Where are the jobs for more children going to come from with increased automization and AI?

Less children = less taxes paid = more debt or less social care.

How are people without jobs going to pay taxes?

Everyone pays taxes. VAT, tax on pensions, CGT.

Yes but they aren't going contribute anything without having a job.

So everyone rich should be made to have a job?
Go to leafy affluent villages in the South of England and you will find plenty of very early retired folks. Lots who retire at 40 or soon after. How would you make them work?

You make their assets work. Fundamental principle of capital taxation since the Industrial Revolution.

@Nadeed, I think most intelligent people want to work because they find working intellectually interesting and stimulating. I certainly did. By and large intelligent people who are not breaking rocks to earn their crust can work into their 70s, and many do.

But if you do break rocks for a living, somewhere in your 50s, your body is likely to go: NO MORE, and if you've filed council tax returns for 35 years, then you are probably bored.to.sobs. by the whole thing.

They will raise taxes, so that the working class will be worse off. The government lie, they don't care about the public. Not just this awful mob we've got now, but all of them.

I agree with that, but I was thinking of the hard rather than soft benefits.

For example “the man in the street” tends to think of foreign aid as akin to us stuffing cash in an envelope and sending it on its way to some random foreign place.

in fact, about a third of foreign aid stays within the U.K. economy. It is spent on (amongst other things) migrants and asylum seekers. While that might be a bit of a dog whistle, what needs to be remembered from an economics viewpoint is the knock on effect. So it might be paying for eg. building processing facilities (so the builders get paid, and pay income tax, and buy things which attract VAT), same with security guards (G4S gets paid, pays corporation tax, pays its suppliers and employees). Same with social workers, medical care etc. it all stays in the U.K. economy and circulates, raising more tax revenue each time.

But even if you look at the other 2/3rds, it’s not entirely altruistic. A huge chunk of foreign aid currently goes to Ukraine. Basically we are paying them to fight a war for us. It’s much, much cheaper both in direct cost and in impact on the economy than if we fight it ourselves.

We used to give a similarly large chunk to Afghanistan and, in highly simplistic terms, we paid them not to grow drugs.

Big chunks going to various county in Africa at the moment, essentially fighting a “political war” against Russia and China for who gets access to mineral rights. We will pay through the nose in the long term if we lose.

And (sorry, I’m getting carried away now) to use the example of money “sent to Ukraine”, about a third of it is spent on weapons/tanks etc (which are manufactured in the U.K., so spent on British companies and British jobs), about a third is “British activities in Ukraine” which I think includes eg the British army - training officers etc (so U.K. jobs paying UK tax).

Even the scheme to support Ukrainian refugees by paying for their board in U.K. homes is counted as “foreign aid”, but stays in the U.K. economy.

I don’t get why people don’t understand that Foreign Aid isn’t because we are nice! 😆

We don't need more children, we need fewer. Where are the jobs for more children going to come from with increased automization and AI?

Fewer! We already have more over 65s than under 15s. It’s quite scary that people don’t understand how the shifting demographics will have a huge impact financially (already started), culturally, etc.

Eccomics moves in cycles.

Except we never actually recovered from the 08 crash…

Hahaha sounds like you have probably been smoking something yourself 😂

the oil and gas industry now pays 75% tax on profits. This is going to increase to 78% in October. Subsidies for investment encourage companies to invest to continue producing hydrocarbons in the UK. Subsidies for decommissioning are linked with how much profit a company has paid on as asset in the past and we as a country want decommissioning to be done properly otherwise future generations will be picking up the bill for remediation.

Why should oil and gas be taxed more than 78%?

@Narwhalsh
Maybe you and your family might do these things
Nothing to say - nothing to add except insults - void

I don't smoke, drink, gamble or do drugs - enjoy your life doing these things 🤢